Breaking: BMI Files Rate Action Against Pandora

Broadcast Music Inc. (BMI) filed a rate action (not to be confused with a lawsuit, despite reports by other publications) asking the Federal Rate Court to set royalty fees for Pandora. The action “asks the court to set reasonable, market driven fees for Pandora after negotiations did not result in an agreement.”

According to BMI, this is their first experience with litigation on fees in the digital music arena since signing the first music industry copyright license for the performance of music on internet.

This action also follows a series of contentious dissension between Pandora and ASCAP, as well as with several Publishers, along with an interesting acquisition of a small radio station in South Dakota.

One Response

So if BMI is owned and operated by broadcasters then what could be their motivation to push the court to set rates for Pandora? Perhaps they are thinking that they can get the rate court to set lower rates that they can then apply to their own online stations? It is never easy to figure out what BMI’s angle is, but it sure as heck isn’t about paying songwriters anything above the bare minimum for their performances.